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Long-term EBRD financing to rescue Kazak Caspian Port of Aktau
The European Bank for Reconstruction and Development (EBRD) is lending the equivalent of US$ 54 million (ECU 42.5 million) to the Republic of Kazakstan to rescue the Port of Aktau, Kazakstan's only major port, from flooding by the Caspian Sea. A 400 metre quay wall, two metres higher than the existing one, will be part of the project, which represents the EBRD's first long-term 15 years loan to the Republic.
"EBRD financing will keep the port operational by raising the level of cargo berths to protect them from the sea," said Ron Freeman, Vice President of the EBRD. "The port is an extremely important asset for the country, especially for western Kazakstan which is rich in agricultural production and in oil and gas. It is Kazakhstan's only port and provides a low-cost distribution outlet for grain and general cargo."
As well as the rebuilding work, other rehabilitation efforts will be undertaken by the EBRD to modernise and expand the port. Many of the port's utilities have been flooded and are partly out of order, reducing productivity and increasing shipping costs. Modern equipment for bulk cargo-handling as well as other mobile equipment will be installed to allow the existing cargo berths to increase the port's capacity. Two-way trade flows between Kazakstan and its neighbours will increase as a result of improved handling at the port.
Finally, the port is being redesigned to enable the private sector to develop specialised cargo handling and storage facilities to increase further port volumes.
The EBRD loan, which has a three and a half year grace period, is in two tranches: US$ 44 million (ECU 34.6 million) and in DEM, a US$ 10 million equivalent (ECU 7.9 million). A US$ 1.9 million technical cooperation component will be used to develop management and privatisation strategies as well as implementing financial controls and monitoring systems.
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